Tyco Lowers Forecast for Quarterly Profit

Tyco International Ltd. lowered expectations for its fiscal second-quarter profit and said it has not reached a decision on whether to sell or spin off its finance unit.

Tyco, roiled by concerns that the company’s accounting has not been transparent, will provide more information today about acquisitions in a quarterly report with the Securities and Exchange Commission.

The conglomerate now expects earnings of 65 cents to 68 cents a share for the quarter, Chief Financial Officer Mark Swartz said on a conference call with investors. Analysts on average were expecting 77 cents, according to those surveyed by Thomson Financial/First Call.

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Shares of Tyco, which lowered its full year earnings estimate last week as it accelerated a plan to split into four companies, fell $1.60 to $28.90 on the New York Stock Exchange. The stock has lost half its value since December.

The company said it remains in talks about a possible sale of its CIT finance unit. Last week, it canceled a share sale for the unit and Chief Executive Dennis Kozlowski said he would consider buyout offers for all its businesses.

Kozlowski announced last month that the conglomerate would split into four companies to enhance shareholder value after the plunge of the company’s share price.